Updated 1-11-24 with mileage rates for the 2023 tax year.
With tax time just around the corner, it’s important to make sure your records and planned deductions are in order. The NNA has previously covered some basic tax tips for Notaries. Ryan Reeves, an accountant with A Notary On the Go in Florida, along with David M. Green, a Notary, National Tax Practice Institute Fellow, enrolled agent licensed by the IRS and owner of David M. Green Bookkeeping and Tax Service in Waynesboro, Pennsylvania, answer some frequently asked questions for mobile Notaries who want to claim a mileage deduction on their income tax.
These are general guidelines, and every person’s tax situation can differ. If you have specific questions about your income tax situation, contact the IRS or a qualified tax advisor.
What are the most important things Notaries need to do if they want to claim a mileage deduction?
The most important thing for claiming mileage/travel deductions is keeping good records.
IRS Publication 463, page 27, has a good example of a business mileage log that incorporates what information should be reflected in your records. Starting out, you will have to choose if you want to deduct actual expenses for travel or use the standard rate method. There are advantages and disadvantages to both methods and it will depend on your situation as to which is better.
What information should be recorded when keeping a record of mileage?
Your records, whether paper-based or recorded using an electronic tool such as Notary Gadget, should adequately document the distance traveled, the date, and the business purpose of the trip. It’s also a good idea to record the vehicle odometer reading at the beginning and end of the year in order to get the total miles driven for the year. I suggest taking a picture of your odometer on the first and last day of the year.
What’s the most common mistake people make when claiming a mileage deduction?
The most common mistake people make is not adequately documenting the business purpose of trips or not properly separating personal mileage from business mileage.
Is there other travel-related information Notaries should record when claiming mileage deductions?
If you are using the actual expense method, then most of your other expenses like lease payments, depreciation, repairs, tires, oil changes, gas and insurance will be covered in the set rate. Otherwise, parking fees, registration fees, licenses, garage rent and tolls are tax deductible and should be claimed, though it’s important to note parking tickets are not deductible.
Anything else Notaries should know?
In the past, many Notaries used paper mileage logs. A smartphone and multiple mileage apps such as MileIQ, Milebug and MileTracker make recordkeeping a lot easier.
For the 2023 tax year, the standard IRS mileage rates for the use of a car (also vans, pickups or panel trucks) is:
65.5 cents per mile for business miles driven, 22 cents per mile driven for medical or moving purposes and 14 cents per mile driven in service of charitable organizations.
David Thun is the Editorial Manager at the National Notary Association.
Related Articles:
4 tips for Notaries claiming home office tax deductions